HP is focusing on growing these businesses at a rate faster than its core business with accretive margins in the longer term. They believe their ability to innovate will help them gain momentum in growth areas like hybrid systems and gaming.

The Future Ready Plan is expected to run through the end of fiscal year 2025 and focuses on digital transformation, portfolio optimization, and operational efficiency. HP accelerated their cumulative savings target for fiscal year 2024 and are on track to achieve their overall program savings.

HP is driving innovation by accelerating the delivery of AI across their product portfolio and focusing on growth opportunities in commercial, solutions, and premium consumer and gaming markets.

Since announcing their Fiscal 2023 Plan, HP has enhanced their digital capabilities in Workforce Solutions and continued to leverage AI to positively impact their products, solutions and operations.

HP is reducing portfolio complexity, improving continuity of supply, and increasing their forecast accuracy across their business to drive reduction in their cost of sales and operating expenses.

HP continued to reduce their structural cost through headcount reductions and are on track to achieve their overall headcount reduction goal. They expect to continue to invest some of the savings into their growth areas and their people.

HP expects the proliferation of AI to have a significant impact on their industry and the markets in which they compete, and the development and use of AI presents competitive, reputational, and liability risks.

HP is heavily dependent on third-party suppliers and supply chain issues have adversely affected, and could adversely affect in the future, their financial results.

System security risks, data protection breaches, cyberattacks, system outages and systems integration issues could disrupt internal operations or services provided to customers, and could reduce revenue, increase expenses, damage reputation and adversely affect cash flows and stock price.

HP operates in an intensely competitive industry and competitive pressures could harm their business and financial performance.

Our alliance partners in certain areas may be or may become our competitors in others. In addition, these partners also may acquire or form alliances with our competitors, which could reduce their business with us.

Furthermore, non-original supplies (including imitation, refill or remanufactured alternatives), which are often available at lower prices, compete with our Printing Supplies business.

In November 2022, HP announced their Future Ready Plan to simplify their operating model. The three key elements of their Fiscal 2023 Plan are digital transformation, portfolio optimization, and operational efficiency.

In addition, our ongoing efforts to optimize the efficiency of our supply chain for cost or redundancy could cause supply disruptions and be more expensive, time-consuming and resource-intensive than expected.

We use a variety of distribution methods to sell our products and services around the world, including third-party resellers and distributors and both direct and indirect sales to enterprise accounts and consumers. Successfully managing our global, multi-tier distribution network is a complex process.

Innovation across products, services, business models and processes is a key element of our culture and success. We are focused on developing products, services and solutions that anticipate customers' changing needs and desires, and emerging technological trends, including accelerating the delivery of AI throughout our product portfolio.

We seek patent protection for inventions likely to be incorporated into our products and services or where obtaining such proprietary rights will maintain or improve our competitive position. As of October 31, 2024, our worldwide patent portfolio included over 22,000 patents which expire at various dates, generally 20 years from their original filing dates.

In addition to developing our patent portfolio, we license intellectual property (“IP”) from third parties. We have also granted and continue to grant to others licenses, and other rights, under our patents when we consider these arrangements to be in our interest.

In fiscal year 2024, HP returned $3.2 billion to shareholders in the form of share repurchases of $2.1 billion and cash dividends of $1.1 billion. On August 27, 2024, HP's Board of Directors increased HP's total share repurchase authorization to $10.0 billion.

We maintain debt levels that we establish through consideration of a number of factors, including cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities, our cost of capital and targeted capital structure.

As of October 31, 2024, we had available borrowing resources of $0.9 billion from uncommitted lines of credit in addition to funds available under the revolving credit facility.

At HP, we believe how we do things is just as important as what we do. Our Sustainable Impact goals reflect our efforts to tackle key issues in Climate, Human Rights, and Digital Equity.

Our operations are subject to regulation under various federal, state, local and foreign laws concerning the environment, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, and the cleanup of contaminated sites.

HP employs approximately 58,000 employees in 59 countries. Together, they power HP innovation by applying their diverse skills and perspectives to create transformative solutions for our partners and customers worldwide.

Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as ongoing geopolitical conflicts, uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment.

We encounter aggressive competition in all areas of our business, and our competitors have targeted and are expected to continue targeting our key market segments. We compete on the basis of our technology, innovation, performance, price, quality, reliability, brand, reputation, distribution, range of products and services, ease of use, account relationships, customer training, service and support, security, availability of application software and internet infrastructure offerings, and our sustainability performance.

Our quarterly sales often have reflected a pattern in which a disproportionate percentage of each quarter's total sales occurs towards the end of the quarter. This uneven sales pattern makes predicting net revenue, earnings, cash flow from operations and working capital for each financial period difficult.